Will CMBS standards put forward stricter requirements for commercial property valuation?

Reportedly, the time for issuing the Business Guidelines for Commercial Mortgage Securitization (CMBS) is approaching, and the requirements of the guidelines in terms of cash flow are stricter than those currently prevailing. According to industry insiders, it is difficult for CMBS to integrate data, and the standardized development of the CMBS market with a potential scale of one trillion yuan is expected.

It is reported that the guidelines put forward stricter requirements for commercial property valuation, income measurement and principal and interest coverage. Generally speaking, the financing amount of commercial property does not exceed 70% of the value of commercial property. Insiders pointed out that after the implementation of the guidelines, the total amount of CMBS financing will tend to be reasonable: high-quality assets can get high financing, and the probability of inferior assets will be reduced; The income generated by assets will be measured more strictly, and the coverage multiple of principal and interest will increase, which will further protect the interests of investors.

In fact, some organizations have already felt the binding force of the code. An institutional source said that he had a CMBS project in his hand, which met the previous registration requirements. If the guidelines are followed, the filing period will be extended.